LRCX (Lam Research) ROCE %: 53.40% (As of Mar. 2026)


LRCX Lam Research Corp LRCX
85 GF Score
Price $379.09
GF Value $130.59
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Lam Research ROCE %?

Lam Research LRCX -5.66% 85 ROCE % is 53.40% as of Mar. 2026. GuruFocus rates LRCX with a GF Score™ of 85/100 and a GF Value™ of $130.59 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Lam Research's annualized ROCE % for the quarter that ended in Mar. 2026 was 53.40%.

Lam Research  (NAS:LRCX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Lam Research ROCE % Related Terms

Lam Research ROCE % Historical Data

* Premium members only.

The historical data trend for Lam Research's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Lam Research ROCE % Chart

Lam Research Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.55 43.03 38.90 31.34 42.05

Lam Research Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 43.69 49.82 50.76 49.46 53.40
LRCX
85GF Score
Lam Research Corp LRCX
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Lam Research ROCE % Calculation

Lam Research's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=6136.332/( ( (18744.728 - 4338.438) + (21345.26 - 6568.425) )/ 2 )
=6136.332/( (14406.29+14776.835)/ 2 )
=6136.332/14591.5625
=42.05 %

Lam Research's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=8203.556/( ( (21391.171 - 6213.153) + (20791.91 - 5242.398) )/ 2 )
=8203.556/( ( 15178.018 + 15549.512 )/ 2 )
=8203.556/15363.765
=53.40 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 53.40% mean?
Lam Research (LRCX) has a ROCE % of 53.40% as of Mar. 2026.
Is Lam Research's ROCE % too high?
Lam Research's current ROCE % is 53.40%. The Semiconductors industry median ROCE % is 4.81. Lam Research's value of 53.40% is 1011.3% above this industry median. Overall, Lam Research has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lam Research's ROCE % compare to AMAT and KLAC?
Lam Research's ROCE % of 53.40% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.81. Lam Research's value of 53.40% is 1011.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Semiconductors company?
The median ROCE % among Semiconductors companies is 4.81, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current ROCE % of 53.40% is 1011.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median ROCE % is 4.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current ROCE % is 53.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lam Research stock overvalued right now?
Based on GuruFocus' analysis, Lam Research (LRCX) is currently considered Significantly Overvalued. The stock's GF Value™ is $130.59, compared to a current price of $379.09 — trading 190.3% above its estimated fair value. The current ROCE % is 53.40% and 1011.3% above the Semiconductors industry median of 4.81. Lam Research's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Lam Research (LRCX), the current ROCE % is 53.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Lam Research (LRCX) Overvalued in 2026?

Based on GuruFocus' analysis, Lam Research stock appears to be overvalued. The current stock price of $379.09 is trading 190.3% above its estimated GF Value™ of $130.59. GuruFocus considers Lam Research to be Significantly Overvalued.

Key valuation signals for LRCX:

  • ROCE %: 53.40%
  • GF Value™: $130.59 vs. price of $379.09 (190.3% above fair value)
  • GF Score™: 85/100 with 6 warning signs
  • Industry Position: 1011.3% above the Semiconductors median

No single metric tells the full story. See the LRCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Lam Research Business Description

Address 4650 Cushing Parkway, Fremont, CA, USA, 94538
Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.
85GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$379.09
Price
$130.59
GF Value